Renegade Inks a Deal to Sell Yukon Project, Receives Commitments Worth A$750,000

Summary

  • Renegade Exploration Limited has received commitments worth A$750,000 through an issue of 150,000,000 shares to sophisticated investors.
  • RNX and Scharfe Holdings Inc. have agreed to a Letter of Intent which comprises of the possible sale of RNX’s Yukon Base Metal Project.
  • The total consideration for the sale comprises of a cash payment of A$1,650,000 and a commitment to spend C$500,000 for exploration and development at the project.
  • A gravity program has commenced at the Yandal East Gold Project which is expected to offer high definition interpretation of structures.
  • Further new target generation is also anticipated through the ongoing gravity program.

Minerals exploration and development company, Renegade Exploration Limited (ASX:RNX) has been aggressively progressing towards achieving its primary objective of becoming a mid-tier resource company.

RNX Secures Commitments To Raise A$750,000

Recently, the Company has received commitments for A$750,000 through the issue of 150,000,000 shares at a per-share issue price of $0.005. These shares shall be issued to sophisticated investors through RNX’s placement capacity under listing rules 7.1 and 7.1A.

Notably, these new shares shall rank equally with presently issued securities in all respects from their issue date.

RNX plans to utilise the funds raised from the placement towards continuing its progress at the Yandal East Gold Project, identify and capture fresh opportunities and offer funding for general working capital requirements.

Interesting Read: Renegade Exploration Limited Cracking Crust at Yandal Project, Plans Significant Activities For Yukon Project

RNX Inks Letter Of Intent For Sale Of Yukon Project

RNX has inked a Letter of Intent for the potential sale of its Yukon Project with Scharfe Holdings Inc., a Vancouver-based boutique investment advisory group that has successfully completed several transactions in the resource and technology sectors over the last decade.

As per the conditions of the Letter of Intent, Scharfe has been granted a period of exclusivity until 30 October 2020 by RNX to undertake due diligence and reach a Share Purchase Agreement for the acquisition of Overland Resources Yukon Limited, RNX’s Canadian subsidiary.

The total consideration for the transaction comprises of the following:

  • A cash payment worth A$1,650,000 payable to RNX
  • A commitment to spend C$500,000 in exploration and development expenditure on the Yukon Project before 31 December 2021

Further, the cash payment component of the transaction shall be carried out in multiple tranches. These include:

Image Source: © Kalkine Group; Data Source: ASX Announcement 05 October 2020

Image Source: © Kalkine Group; Data Source: ASX Announcement 05 October 2020

Various Other Terms Of The Agreement

Subsequent to the final payment, RNX’s Net Smelter Royalty in the Yukon Project shall stand at 1%. Interestingly, in order to acquire this share of royalty, Scharfe has an option to acquire it through the payment of A$1,000,000 to Renegade.

The operatorship of the Yukon Project shall be assumed by Scharfe on and from the Closing Date of the transaction. Further, Scharfe shall be responsible for maintenance of all permits in agreement with the appropriate conditions.

Did you read: Getting Acquainted With The Operations Of Renegade Exploration Limited, A Walk Through Project Portfolio

However, upon failure to meet any of the cash consideration payments when due, the transaction shall stand cancelled, and the ownership of the Yukon Project shall be retained by RNX.

Further terms of the Letter of Intent include a non-refundable deposit of A$20,000 in cash made by Scharfe to Renegade. This amount shall be adjusted towards the payment of the first tranche of cash consideration if the transaction progresses ahead.

Presently, RNX has initiated a gravity program over 400m x 100m at its Yandal East Gold Project and anticipates that the program shall generate new targets for drilling while offering high definition interpretation of structures.

RNX share price quoted at $0.006 with a market capitalisation of $4.99 million.

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